Thursday 03 Apr
Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, welcomed the decision of the European Parliament, issued on Tuesday, approving the release of the second tranche of the Macro-Financial Assistance (MFA) to Egypt, amounting to 4 billion euros.
Al-Mashat emphasized that this decision reflects the strong relations between Egypt and the European Union, and the joint commitment to implementing the terms of the strategic partnership announced last March by President Abdel Fattah El-Sisi and President of the European Commission, Ursula von der Leyen.
The Minister explained that the coming period will witness
intensive meetings and coordination with national authorities and the European
side to implement the economic aspect of the partnership, and to complete the
required structural reforms within the second tranche of the MFA.
She pointed out that these reforms aim to achieve three main
objectives: macroeconomic stability, improving competitiveness and the business
environment, and promoting green transition, as part of the national program
for structural reforms.
Al-Mashat mentioned that she recently held a meeting with
Elena Flores, Director-General for Economic and Financial Affairs at the
European Commission, to discuss the timeline for implementing the second
tranche of the MFA, and the efforts made to implement structural reforms.
This decision comes within the framework of the financial
package amounting to 7.4 billion euros, which was announced in March 2024, including
5 billion euros under the MFA mechanism, 1.8 billion euros in investment
guarantees, and 600 million euros in development grants.
The partnership aims to enhance European investments in
Egypt, support the Egyptian economy, expand cooperation in areas of national
priority, promote economic stability, encourage investment and trade, develop
frameworks for migration and mobility, and develop human capital.
Al-Mashat had announced last December the European
Commission's approval to disburse one billion euros to Egypt, within the first
tranche of the MFA.
Over the past year, the Ministry of Planning, Economic
Development, and International Cooperation led efforts in coordination with
relevant entities (the Central Bank, Ministries of Finance, Social Solidarity,
Labor, Investment and Foreign Trade, and Electricity and Renewable Energy, as
well as the Egyptian Competition Authority, and the Information and Decision
Support Center of the Cabinet), to implement numerous reforms within the three
pillars of the structural reform program.
These included the electronic calculation of payroll taxes,
the activation of the Unified Public Finance Law to establish an annual ceiling
for public government debt, and the promotion of sustainable transition through
the expansion of social protection networks.
Additionally, a Prime Ministerial decree was issued to all government entities to submit all tax exemptions granted to state-owned enterprises to prepare a preliminary draft of the exemptions that should be abolished, and to establish a unified database managed by the State-Owned Enterprises Inventory and Monitoring Unit, which includes ownership details for all state-owned companies.
